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Learn Indian Salary Breakup Calculation | Step 1


💼 Understanding Indian Salary Breakup: Structure, Components & Excel Logic

A typical Indian salary breakup comprises various components that determine your earnings, deductions, and employer contributions. While the exact structure may vary across companies, the following table offers a standard format that is widely used for salary analysis and Excel modeling.

This structure helps explain each salary component and the Excel formula or logic used to calculate it – ideal for HR professionals and Excel users.
Type Components Excel Formula / Logic
A. Total Gross Salary Enter the gross amount manually
B. Earning Components Basic & DA =Gross * 60%
HRA =Basic & DA * 40%
Medical Allowance =(Gross – Basic – HRA)/3
City Allowance =(Gross – Basic – HRA)/3
Other Allowance =(Gross – Basic – HRA)/3
C. Deduction Components ESI (Employee) =IF(Gross < 21001, Gross * 0.75%, 0)
PF (Employee) =IF((Gross – HRA) < 15001, (Gross – HRA) * 12%, 1800)
Professional Tax (PT) Flat rate
D. Net Pay Net Salary (Take Home) =Gross – ESI – PF – PT
E. Employer Contributions ESI (Employer) =IF(Gross < 21001, Gross * 3.25%, 0)
PF (Employer) =IF((Gross – HRA) < 15001, (Gross – HRA) * 13%, 1950)
Bonus =Basic & DA * 8.33%
Gratuity =Basic & DA * 4.81%
F. CTC Monthly CTC =Gross + ESI (Employer) + PF (Employer) + Bonus + Gratuity
Annual CTC =Monthly CTC * 12
📊 Note: A downloadable Excel salary breakup calculator will be optionally available later for practice.

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